Genesis sought to bail out $1 billion from investors before withdrawals stopped: report

Cryptocurrency lender Genesis has sought to raise a $1 billion loan from investors to avert a “liquidity crunch” fueled by the fallout from the collapse of cryptocurrency exchange FTX, according to a… The Wall Street Journal a report.

The company said it needed the credit by 10am last Monday, but it didn’t get it.

Wednesday morning, Genesis that is more dangerous It will suspend withdrawals from its lending arm and blame FTX’s collapse on “abnormal withdrawal requests that exceeded our current liquidity.”

“There is a steady influx of deposits driven primarily by retail programs, Genesis partners (i.e. Gemini Earn) and institutional customers testing liquidity,” the document says.

Genesis did not immediately respond DecryptComment request.

company He said Trading and custody operations remained “fully operational” and that Genesis Global Trading, the SEC-registered broker-dealer that holds the Genesis virtual currency license, is Its data is capitalized and it operates independently.

But the lender too chirp that the derivatives business has $175 million in closed-end funds in its FTX account, though it said this would not affect its market-making activities.

Genesis is still reeling from the collapse of Three Arrows Capital (3AC) earlier this year, and the company says that $2.3 billion in debt From the former cryptocurrency hedge fund “negatively affected” Lending branch liquidity.

Genesis joins Fallout FTX

Genesis joins the growing list of crypto companies affected by the demise of cryptocurrency exchange FTX earlier this month.

The company founded by CryptowinnerSam Bankman Fried Archived It reportedly filed for Chapter 11 bankruptcy last week They owe money to more than 1 million creditors, according to the filing.

FTX owned cryptocurrency exchange universal liquid and cryptocurrency lenders salt Both withdrawals paused this week and sourced from popular crypto lender BlockFi Tell Decrypt The company declared bankruptcy after experiencing “significant exposure to FTX”.

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